This video for ING’s Be Good at Money explains some of the pros and cons of renting and of buying a home.
Home owning ups and downs
On the plus side, paying off a home can act like a form of regular investment – and owners can decorate and renovate their property just the way they like it. Further, if your property value increases, so does your wealth and in some countries home ownership means less tax.
But homeownership can also have disadvantages.
Legal fees and property taxes can add up. Moving can be difficult, potentially reducing the options for getting a job in another location. Moreover, the video warns “however secure property might feel, prices can fall as well as rise”.
Which is best?
Depending on your situation, either buying or renting can work in your favour.